APPROVAL OF MINUTES
The minutes of the Regular Council Meeting of May 20, 2003 and Executive
Meeting Minutes of May 20 were approved as presented.

SPECIAL PRESENTATIONS & AWARDS:
Mayor invited Larry Christensen, Exalted Ruler of the Ashland Elks Lodge
to acknowledge 7th grader Jessie Stanton who won first place in the National
Award for Americanism essay contest sponsored by the Ashland Elks Lodge.
Jessie read his essay aloud.

Proclamation of June 14th, 2003 as Flag Day in the City of Ashland was read
aloud.

CONSENT AGENDA
1. Minutes of Boards, Commissions and Committees.
2. Confirmation of Mayor's reappointment of Jack Sabin, and appointments
of Helen Smith and Neil Kunze to the Hospital Board for terms to expire June
30, 2007, and initial appointment of Steve Miner as the 12th Hospital Board
member for term to expire June 20, 2006.
3. Annual Liquor License Blanket Approval.
4. Ambulance License Renewal.
5. Hazard Trees Removal on City Property.
6. Adoption of Findings for Planning Action 2002-089, 3151 East Main Street
(annexation).

Councilor Morrison requested that item #5 be removed from Consent Agenda
for further explanation.

PUBLIC HEARINGS
1. Public Hearing to consider adoption of 2003-2004 Budget.

Finance Director Lee Tuneberg briefly explained that this is the third phase
of the annual budget process, which is to hold a public hearing and to adopt
resolutions and ordinances to complete and "set" the budget for FY 2003-04.

PUBLIC HEARING OPEN: 7:15 p.m.PUBLIC HEARING CLOSED: 7:15 p.m.

PUBLIC FORUM
Jack Hardesty/575 Dogwood Way/Spoke regarding the Chamber grant by the
City. He voiced his concern with how this grant money is being spent and
what he felt were ineffective programs. He does not see what the Chamber
has done to influence the City and to help business. He feels that marketing
should be directed toward all areas of our culture, not just theater and
OSF. He suggested that the council set forth the following three initiatives
for the Chamber:

· Require the Chamber to produce Annual Reports documenting their
progress;
· Create an Annual Marketing Plan that holds new initiatives;
and
· Hire a marketing/advertising/public-relations professional that could
oversee progress and take an unbiased stand when evaluating the reports.

City Attorney Paul Nolte presented an update on the negotiations with Charter
Cable. It is being suggested that the new contract would raise the PEG access
fee from $.60 per subscriber to $.75 or even $1.00. PEG is the Public, Education,
and Government Programming, and is used for programming on such channels
as 8, 9, 31, and 33. Charter has argued that raising their rates could result
in them loosing their competitive edge with their customers. Charter would
not pay the PEG fees themselves, but rather pass it on to their subscribers.

An alternative to the increase in PEG access fees, would be a lump sum of
$75,000 paid by Charter to the City. The dollars resulting from an increase
in the PEG access fees would go to RVTD, and could be used to refurbish the
council chambers and supplement operational costs. While the lump sum dollar
amount could only be used for capital improvements. Staff is seeking direction
from the Council on which they think would be most beneficial for the City
and its subscribers.

Charter has also requested some changes with their agreement. They would
like to change the definition of gross revenues so launch fees are not considered
revenue. Nolte clarified that although he did not agree with the change,
it would not make a big impact to the City, and is not worth arguing over.
Charter has complained that satellites are not being charged the same PEG
access fees. They are also requesting the City go from six public access
channels, down to five. Stating that the sixth channel is not is use. The
City is soliciting RVTV for feedback in this matter.

It was suggested by the council that whatever the increase may be, it is
consistent with what our other vendors are paying (AFN). Nolte noted that
the contracts have been reduced from twenty years down to five years each
due to increasing technology and growth in this area. In summary, the
negotiations with Charter have been going very well on the local level, though
difficulties have been encountered when dealing with the national
representatives. If negotiations break down, issues would most likely go
to mediation for resolution. It was noted that the City is not required to
renew their franchise agreement, though it will be up to the City to prove
that their services are not adequate in order to do so.

Council agreed that staff should continue with negotiations and bring back
a proposed franchise for council review and approval.

ORDINANCES, RESOLUTIONS AND CONTRACTS:
1. Second Reading by title only of "An Ordinance Amending Sections 15.04.220,
15.16.240 and 15.20.040 of the Ashland Municipal Code to Provide that Fees
for the Mechanical, Plumbing and Electrical Codes be Set by Resolution of
the City Council."

2. Reading by title only of "A Resolution Adopting the Annual Budget and
Making Appropriations."
Finance Director Lee Tuneberg briefly spoke on the issue of fund balances
and how they are keeping with the projections made.

3. First reading of "An Ordinance Levying Taxes for period July 1, 2003
to and including June 30, 2004, such taxes in the sum of $8,008,000 upon
all the Real and Personal Property subject to Assessment and Levy within
the Corporate Limits of the City of Ashland, Jackson County, Oregon."

OTHER BUSINESS FROM COUNCIL MEMBERS
Councilor Laws mentioned that it is his intention over the next couple of
years to work with the OSF, Chamber, and local citizens to attached specific
objectives to the Economic Development Plan. Including tracking how the money
was used, and establishing performance indicators to track the progress.
The goal is to have all of these factors set and in place by next years budget.

Councilor Jackson wanted the public to know that the Council attended over
30 hours of discussions that were held at the Budget Committee Meetings before
they came to a final vote this evening.

Councilor Hartzell commented on the OSF and the Chamber of Commerce. She
mentioned that both groups were interested and supportive of further discussions
involving the Economic Development Plan.

Mayor DeBoer relayed two openings within the Bicycle Commission, and urged
citizens to apply if interested. There was some discussion that the Bicycle
and Traffic Safety Commissions could be combined, and it was verified that
there are joint sessions planned for the future. Citizens' input on this
matter is welcomed.

Councilor Hartzell asked for Council support on getting a report from the
Committee for the Youth Activity levy. She would like an update on how they
were doing, and if any assistance from the Council was needed. Hartzell proposed
adding this as an agenda item for one of the regular meetings that are televised.

Councilor Morrison requested a progress report on the recruitment for a Chief
of Police. Grimaldi informed the Council that they are presently soliciting
public input, and are in the process of selecting a consulting firm that
will assist in the search. They are seeking a firm that has a strong record
for placement, and will provide a thorough background check for the applicants.
Candidates will start interviewing early to mid September, and will possibly
have the position filled by October. It was noted that the Parks Commissioners
are also requesting public input on the search for a new Parks Director.

Paula Brown came forward to give an update on the Siskiyou Blvd renovation.
She explained that they are still moving forward on the project, though the
City had requested a stop to tearing up any more pavement or concrete until
after the Fourth of July. Next week the medians will be filled with sod,
and everything should be ready for the upcoming graduations and parade. They
are requesting the public refrain from placing chairs or blankets on the
new grass until the day of the parade. After the Fourth of July, construction
will continue, and they are scheduled to pave Siskiyou Blvd. in September.

Brown reported that testing for Hosler Dam this week was positive. Last weeks
Silent Test was wired incorrectly, but they have re-wired the box and all
alarms responded correctly. Questions were posed as how to get the word to
all of the community and visitors in the event that there is an actual emergency.

Mayor reminded citizens that the fire season has started. He urged citizens
to use caution, especially with fire works during the Forth of July. He also
noted the study session on homelessness that will be held tomorrow, June
4th at 12:00 p.m.